§ Mr. Andrew MacKayTo ask the Secretary of State for Energy if he is in a position to announce his decision on the future role of the Energy Efficiency Office.
§ Mr. Peter MorrisonOn 25 September I said that I intended to take stock of the Energy Efficiency Office's programmes, to assess their cost-effectiveness and continuing relevance and to consider the strategic options for the future. This I have now done, and conclude that there is a continuing role for the EEO to fulfil. Its programmes, especially in the industrial and commercial sectors, continue to benefit the United Kingdom by improving energy efficiency, which is reflected in price, export competitiveness and profits. In the domestic sector, the EEO's activities promote the economic and energy efficient construction, insulation, heating and use of the nation's housing stock. Accordingly, I plan no change in the EEO's 1988–89 budget of £20.9 million.
However, general awareness of the case for energy efficiency is now well established and I have therefore asked the EEO to target its work in the most economically attractive areas. Moreover, I have also asked the EEO to examine how the contribution from those who benefit from the office's industrial and commercial programmes could be increased, including the feasibility of adapting those programmes where appropriate to recover part of their costs, and the extent to which programmes could be taken over for operation by the private sector. Developments on both counts will be taken into account when the 1989–90 budget is finalised and I am not committed to extending the present level of funding beyond 1988–89.
The EEO will shortly begin consultations with those concerned and I hope to announce the result of this further work before the summer recess.